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Should You Worry About Mobi724 Global Solutions Inc.'s (CVE:MOS) CEO Salary Level?

In 2014 Marcel Vienneau was appointed CEO of Mobi724 Global Solutions Inc. (CVE:MOS). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Mobi724 Global Solutions

How Does Marcel Vienneau's Compensation Compare With Similar Sized Companies?

According to our data, Mobi724 Global Solutions Inc. has a market capitalization of CA$8.7m, and paid its CEO total annual compensation worth CA$290k over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at CA$203k. We looked at a group of companies with market capitalizations under CA$265m, and the median CEO total compensation was CA$158k.

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Thus we can conclude that Marcel Vienneau receives more in total compensation than the median of a group of companies in the same market, and of similar size to Mobi724 Global Solutions Inc.. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see a visual representation of the CEO compensation at Mobi724 Global Solutions, below.

TSXV:MOS CEO Compensation, October 1st 2019
TSXV:MOS CEO Compensation, October 1st 2019

Is Mobi724 Global Solutions Inc. Growing?

On average over the last three years, Mobi724 Global Solutions Inc. has grown earnings per share (EPS) by 12% each year (using a line of best fit). It saw its revenue drop 7.8% over the last year.

This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Mobi724 Global Solutions Inc. Been A Good Investment?

Given the total loss of 11% over three years, many shareholders in Mobi724 Global Solutions Inc. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

We compared total CEO remuneration at Mobi724 Global Solutions Inc. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. On the other hand returns to investors over the same period have probably disappointed many. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. Shareholders may want to check for free if Mobi724 Global Solutions insiders are buying or selling shares.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.